Techneglas Inc. has asked a federal judge to close its bankruptcy case, nearly two years after the television glass manufacturer filed for Chapter 11.
In documentation filed with the judge in the wee…
Techneglas Inc. has asked a federal judge to close its bankruptcy case, nearly two years after the television glass manufacturer filed for Chapter 11. In documentation filed with the judge in the week ending 23 June 2006 in Columbus, Ohio, where the company is headquartered, Techneglas said it either has or will pay out more than USD 69.7 million in claims, with pension benefits accounting for nearly a third of the total. Techneglas, owned by Nippon Electric Glass Co. of Japan, has reorganized under Chapter 11 bankruptcy. It will sell and distribute imported television glass, having closed its three North American factories and laid off more than 1,000 staff. Techneglas blamed the closures on higher labor, material and operating costs, along with competition from lower cost, imported glass and the shift in consumer demand to flat screen televisions. Approximately 700 local workers, the majority of them members of the Glass, Molders, Pottery, Plastics and Allied Workers International Union, Local 243, were laid off on 3August 2004. The company sold a 120,000 square meter plant and surrounding property to an Ohio real estate management company for USD 6.65 million in January 2006. The same company also bought the firm“s Columbus manufacturing plant and property. The sale of the company“s assets was used to pay claims filed by creditors and employees. Techneglas executive Joseph Schaeufele said priority claims totaling USD 16.95 million have been or will be paid at a rate of 100%. Employee severance and vacation pay were among the priority claims. USD 17.3 million-worth of unsecured claims either have been or will be paid at 67%. Secured claims total another USD 631,823. The largest share of the payout, USD 23.13 million, went to the Pension Benefit Guaranty Corp. which assumed control of the employee pensions in 2005 under an agreement between the union and Techneglas. Lawyers and other professionals who worked on the case shared USD 11.76 million.